08 Feb 2022

Tristan's TIPS One Debt Fund Delivers £22.3m of Financing to Melburg Capital for Industrial Acquisitions

Source: Tristan Capital Partners Press Release

08 February 2022, London: Tristan Capital Partners’ TIPS One "Income Plus" Real Estate Debt Fund has provided £22.3 million of senior real estate debt financing to Melburg Capital under a five-year loan, to support the acquisition and light refurbishment of two distribution and manufacturing assets in Wakefield, West Yorkshire.

The portfolio comprises Sirdar Business Park, a 23-unit multi-let site set across 370,051 sq ft on a 16-acre site, and Wakefield 41, a 210,000 sq ft on an 8-acre single-let estate. Located in the established industrial and national logistics market of Wakefield, the assets are expected to benefit from strong occupier demand owing to their proximity to key transport routes with access to the M62 corridor and M1 providing easy access to both the East Coast and the West Coast ports, while also feeding into the key north–south motorways.

The assets will be refurbished on a rolling basis alongside a number of estate management initiatives, including the enhancement of the properties’ energy performance, to deliver higher rents.  

BBS Capital acted as debt advisor to Melburg.

Dan Pottorff, Head of Debt Investment at Tristan Capital Partners, said: “The TIPS One strategy is to provide financing to assets with the potential for income and capital growth and backing sponsors capable of realising this potential. These assets are well-located and primed to take advantage of the demand in an undersupplied market which is benefiting from positive tailwinds stemming from the ‘onshoring’ of supply chains.  Melburg Capital is a sponsor with the right track record and skill-set to deliver the business plan.”

Ashil Sodha, Director, Debt Investment at Tristan Capital Partners, added: “The transaction marks our first in the industrial and logistics sector as we look to diversify and extend the parameters of the TIPS One fund. This financing demonstrates Tristan’s continued conviction in the sector and key distribution locations such as Wakefield, the strength of which has been reaffirmed by the recent sale of Amazon’s 2 million sq ft warehouse at nearby Wakefield Hub. We look forward to working with Melburg and further developing the partnership to support their aggregation strategy.”

Jack Burgess, Chief Executive at Melburg Capital Limited, said: “It was a pleasure to work with the Tristan team. We look forward to incorporating additional acquisitions into the facility as our UK focused industrial platform, which now exceeds 2 million sq ft, continues its organic growth.”

Adam Buchler at BBS Capital, said: “This transaction is our first with Tristan Capital and we look forward to growing the relationship from here. We are pleased to have arranged this highly bespoke and competitive facility for our client Melburg as we continue to work with them to support their growth strategy.”

Tristan Capital Partners was advised by Eversheds Sutherland. Freedman + Hilmi and Burgess Okoh Saunders advised Melburg.